TOP NEWS SUMMARY: Retailer Woes Continue As MySale Now 'For Sale'

(Alliance News) - The following is a summary of top news stories ...

Alliance News 24 June, 2019 | 11:29AM
Email Form

(Alliance News) - The following is a summary of top news stories Monday.
----------
COMPANIES
----------
Acacia Mining said it strongly disagrees with major shareholder Barrick Gold's view of the company, but said an offer at a "fair" price would be attractive. Canadian gold miner Barrick currently owns 64% of Acacia and has put in a USD787 million bid to buy the remaining stake in Acacia. The offer comprises of 0.153 new Barrick shares per Acacia share. Barrick has until July 9 to make a firm offer, although it told news agency Bloomberg News last week that it does not plan to raise its offer for Acacia. The London-listed gold miner expressed strong disagreement with Barrick's view on its life of mine plans in Tanzania. Moreover, the miner said Barrick had intervened in its negotiations with the Tanzanian government, "undermining Acacia in Tanzania". The firm noted Barrick had not been invited to intervene, as Acacia was "continuing its own engagements with the highest levels" of the government with "no reason to believe that these engagements would not continue". If it can't get a "recommendable offer from Barrick" then it will keep trying to negotiate a settlement with the government of Tanzania to lift the government's export ban and resume operations at its Bulyanhulu project..
----------
Banknote and security documents printer De La Rue said Chair Philip Rogerson has decided to retire after finding a new chief executive officer for the company. De La Rue in May-end reported the departure of Chief Executive Officer Martin Sutherland amid a sharp drop in annual profit. The company, which is trying to reinvent itself into a security and anti-counterfeiting technology firm, had said Sutherland agreed to step down as CEO as soon as his successor is in place. Rogerson is leading the effort to find a replacement. De La Rue on Monday also said that Senior Independent Director Andy Stevens intends to step down by no later than end of 2019 due to his other commitments.
----------
MySale Group put itself up for sale, as part of a strategic review spurred by a challenging Australian retail market. MySale said its strategic review will assess "all types of corporate activity", such as reducing debt, raising further capital and de-listing from AIM. Among these, MySale is considering selling all or part of the company. Any discussions for a takeover will occur under a formal sale process, and MySale is now in an offer period, it said. It has not yet entered any discussions for a possible offer. MySale's largest market is Australia, where it "has continued to experience challenging trading conditions" due to new regulations introduced in July 2018, as well as its inventory location, cost base, and product mix. As a result of its Australian troubles, MySale's revenue, gross margin, and gross profit have all suffered. MySale said it does have an action plan, which prioritises Australia and New Zealand and is forecast to cut costs and improve the firm's financial 2020 business performance. MySale is expected to become cash generative in its financial 2020 year, with an improved profit.
----------
MARKETS
----------
London shares were flat to lower with investors cautious ahead of this week's G20 meeting in Japan, where Chinese President XI Jinping is expected to meet US President Donald Trump. On-line retailer MySale was down 50%, giving it a market capitalisation of little more than GBP5 million. Upon listing in London in 2014, the online retailer had a GBP340 million market cap. Gold was higher amid heightened tensions between the US and Iran. Wall Street was set for a higher open with major stock indices called up 0.3%.
----------
FTSE 100: flat at 7,407.84
FTSE 250: down 0.2% at 19,305.20
AIM ALL-SHARE: down 0.1% at 932.21

GBP: up at USD1.2754 (USD1.2694)
EUR: up at USD1.1393 (USD1.1320)

GOLD: up at USD1,408.20 per ounce (USD1,395.10)
OIL (Brent): flat at USD65.28 a barrel (USD65.20)

(changes since previous London equities close)
----------
ECONOMICS AND GENERAL
----------
US President Donald Trump on Sunday said he does not want to start a war with Iran. However, he warned that if it comes to a war then it will be "obliteration like you've never seen before" for the Islamic Republic. In an interview on NBC's "Meet The Press" on Sunday, Trump said that the only condition is that Iran can not have a nuclear weapon. "I'm not looking for war and if there is, it'll be obliteration like you've never seen before," Trump said. "But I'm not looking to do that. But you can't have a nuclear weapon. You want to talk? Good. Otherwise you can have a bad economy for the next three years." Tensions between the US and Iran rose after the country shot down a US military drone last Monday.
----------
China and the US should work to reach a compromise in their trade dispute, Vice Minister of Commerce Wang Shouwen said in Beijing, days ahead of a planned meeting between the country's presidents. Chinese and US trade teams are both preparing for negotiations following a phone call last Tuesday between Chinese President Xi Jinping and US President Donald Trump, Wang told a press briefing. Trump and Xi are set to meet later this week at the G20 summit in the Japanese city of Osaka. "The agreement should work for both sides," Wang said. Trade negotiations between China and the US broke down last month, after the US accused China of back-pedalling on previous agreements.
----------
UK consumers are set to continue spending despite economic uncertainty over Brexit but could begin to tighten the purse strings over the next two years, according to a new report. The EY Item Club forecasts for 2019 predict UK consumer spending growth of 1.6% in 2019, below 1.8% last year. It continues a trend of slower spending growth, at half the rate of 2016's 3.2% rise. But the estimates put consumer spending ahead of economic growth as a whole, with gross domestic product forecast to grow by 1.3% this year.
----------
Boris Johnson has repeated his determination to deliver Brexit by Halloween, in what will be seen as an attempt to refocus attention away from his private life. The Tory leadership candidate appeared to deliver a retort to his rival to be prime minister as he vowed "we are not going to bottle it" on the EU exit date of October 31. But Jeremy Hunt called on Johnson not to be a "coward" by avoiding a live TV debate with him this week, as he suggested otherwise he would be "slinking through the back door" of Number 10. Johnson remains under pressure to explain why police were called to the home he shares with partner Carrie Symonds.
----------
It took three months and two elections - but the opposition finally won the Istanbul mayoral rerun in a stunning landslide, as voters rebuffed Turkey's powerful president and overturned the quarter-century stranglehold of Islamic conservatives. The results are still unofficial. Ekrem Imamoglu of the Republican People's Party declared victory minutes after Binali Yildirim from the ruling Justice and Development Party conceded defeat. Imamoglu won 54.03% of votes, and Yildirim was at 45.09%, with 99.37% of ballots counted, according to unofficial results from state news agency Anadolu.
----------
North Korean leader Kim Jong Un has received a personal letter from US President Donald Trump, state news agency KCNA reported. What was said in the letter was not revealed, however Kim said after reading it that it was "of excellent content", according to KCNA. "Appreciating the political judging faculty and extraordinary courage of President Trump, Kim Jong Un said that he would seriously contemplate the interesting content," the report added.
----------
Copyright 2019 Alliance News Limited. All Rights Reserved.

Email Form
Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
MySale Group PLC 3.00 GBX 0.00 -
About Author Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.